The most famous indicators in the digital currency market: Fear and Greed Index 📈📉
In the digital currency market, indicators work to provide a summary picture of the market situation.
These indicators help investors, especially those who do not follow the market regularly, to get an overview of its condition.
One of the most popular indicators used in the cryptocurrency market is the Fear and Greed Index.
What is the fear and greed index? 🧐
The Fear and Greed indicator divides the market into two modes: Fear and Greed
🔴 Fear mode expresses a negative impression of the market, as increasing sales occur.
🟢 Greed mode means a positive market impression, as purchases occur and digital currency prices rise.
How does the Fear and Greed Index work?✍️
The indicator works on a scale from 0 to 100:
- 0 expresses the most severe cases of fear.😨
- 100 expresses the most extreme cases of greed. 🤑
How are these numbers determined?📊
The Fear and Greed Index number is determined by five main factors:
1. 📉 Volatility: Comparing the current volatility with the average over a period ranging from 30 to 90 days. The higher the volatility, the higher the fear rate.
2. 🔄 Trading volume: Comparing the buying volume with the selling volume. Increasing the volume of buying means increasing greed, while increasing the volume of selling means increasing fear.
3. 💬 Public opinion: Investor interaction on social media platforms is analyzed and opinion polls are conducted to determine the general mood of the market.
4. 🏦 Takeover:#Bitcointakeover of the market is being studied. The more $BTC holds, the greater the fear rate, as investors consider it a safe haven in times of turmoil.
5. 🔍 Search rates: Data from search engines is analyzed to measure people’s interest in investing in digital currencies. Increased search for digital currencies means increased greed.
This is an indicator of fear and greed
Fear and Greed IndexFear and Greed Index$ETH
#BinanceTurns7 #solana #Binance #bitcoin #BinanceTournament"
